Digitization and ambidextrous green innovation: a resource orchestration perspective

Digital transformation and green innovation are critical to firms’ competitive advantage and, thus, firms desire to make digital transformation enhance green innovation. However, the relationship between the digital transformation on green innovation is unclear. Drawing on digital empowerment, we delineate types of digital transformation and their impacts on green innovation in manufacturing firms. Our empirical results indicate that production digitalization and service digitalization have a significant promoting effect on both of green technological innovation and green management innovation. However, the effect of production digitalization on green management innovation is stronger than that of service digitalization. Moreover, environmental regulation enhances the positive effect of service digitalization on green technological innovation and green management innovation. While it enhances the effect of production digitalization on green management innovation. Peer firms’ green innovation strengthens the effect of service digitalization on both of green technological innovation and green management innovation.

Digital transformation enables small and medium enterprises (SMEs) to reduce or overcome their reliance on resources and energy, thereby minimizing their environmental impact and providing them with sustainable green competitive advantages. However, the reasons for this phenomenon are not yet clear. To further investigate this issue, we selected 391 Chinese SMEs to examine the relationships among green transformation, green innovation, government regulation, and green competitive advantages. Green innovation includes green product innovation and green process innovation, while government regulation includes incentive regulation, constraint regulation, and guidance regulation. The empirical results show that digital transformation can enhance SMEs' green competitive advantages. Additionally, the hypothesized mediating effect of green product innovation and green process innovation between digital transformation and green competitive advantages is supported, while the moderating effect of incentive regulation, constraint regulation, and guidance regulation on the relationship between digital transformation and green product innovation and green process innovation is also confirmed. The findings of this study may contribute to more effective management of digital transformation and green innovation in SMEs, thereby promoting their development.

Purpose This study delves into the intricate dynamics between technological readiness, knowledge sources and their collective impact on firms' ability to achieve ambidextrous green innovation (GI). It specifically aims to dissect the moderating influence of resource orchestration capability (ROC) in this nexus, proposing a nuanced exploration into how technological preparedness and the strategic utilisation of both internal and external knowledge sources can significantly steer firms towards successful exploitative and exploratory GI endeavours. Design/methodology/approach The study draws upon resource orchestration theory, integrating a cross-sectional approach that incorporates primary data from Pakistani manufacturing firms. The data consisting of 452 responses was analysed employing Partial Least Squares Structural Equation Modelling (PLS-SEM). Findings The research verifies that technological readiness has a substantial influence on exploitative and exploratory GI. Moreover, it reveals that both internal and external knowledge resources mediate the link between technological readiness and ambidextrous GI. Notably, while ROC enhances the favourable impact of external knowledge resources on both types of GI, it does not significantly moderate the effect of internal knowledge sources. Practical implications Managers must prioritize enhancing technological preparedness and strategically coordinating knowledge resources to drive both exploitative and exploratory environmentally friendly innovation. Investments in technology and collaborations with external partners, guided by strong resource management capabilities, are crucial for achieving sustainable innovation. Originality/value This research contributes to ambidextrous GI literature by examining the roles of technological readiness, mediated by internal and external knowledge sources and moderated by ROC. It offers detailed insights into the mechanisms that promote sustainable innovation, enriching the current understanding of the subject.

The increasingly environmental issues pose challenges to the economic development of countries, particularly hindering industrial transformation in developing nations. This study, grounded in the Resource-Based View, examines factors influencing green innovation in high-tech manufacturing firms. Market interactions and digital technologies significantly impact resource investments in green innovation. Using data from Chinese high-tech manufacturing firms from 2007 to 2021, the study reveals that customer concentration negatively affects green innovation, while digital transformation promotes it and mitigates the inhibitory effect of customer concentration. To explain this mechanism, green innovation is divided into green process innovation and green product innovation, and the effect of customer concentration is more pronounced in green product innovation. Further testing discusses the roles of the external environment, internal governance, and manager characteristics. Specifically, product market competition and political resources influence firms’ reliance on major customers, allowing digital technologies to optimize resource allocation for green innovation. In terms of internal governance, flexibility and regulatory strength alter the emphasis firms place on green innovation, with higher governance efficiency reducing dependency on major customers. Managerial characteristics, particularly managers’ rationality, determine the importance placed on digital technologies versus customer demands, leading to varied investment decisions in green innovation. Our findings provide valuable insights for optimizing resource allocation and enhancing green innovation investment, thereby effectively promoting sustainable regional economic development.

Does digital transformation promote local-neighborhood green technology innovation?－based on the panel data of Chinese a-share listed companies from 2011 to 2021

This study empirically examines the effect of digital transformation on green technology innovation in Chinese A-share listed companies from 2014 to 2023, while also considering the moderating influence of industrial structure upgrading. Using a sample of 30,970 firm-year observations, digital transformation is measured by the frequency of related keywords in annual reports, green innovation is proxied by green patent applications, and industrial upgrading is captured by the ratio of tertiary to secondary industry. Panel data regression models are employed to test the hypotheses. The research findings indicate that digital transformation substantially enhances the level of green technological innovation in firms, and this positive effect is consistent across multiple green innovation metrics. The upgrading of industrial structure significantly influences the relationship between digital transformation and green innovation, enhancing the innovative impacts of digitalization. Further heterogeneity analysis reveals that the impact of digital transformation varies significantly across regions and firm sizes, with eastern regions and larger firms exhibiting more pronounced effects. This study also finds that the moderating role of industrial structure upgrading is particularly evident in green invention innovation, though its influence on utility model innovation is relatively limited. These findings provide comprehensive insights into how digital transformation and industrial upgrading jointly shape corporate green innovation patterns. The profound integration of digital transformation with green development is essential for enhancing enterprise competitiveness and fostering high-quality, sustainable economic growth. This study offers empirical evidence and specific recommendations for promoting this process at the institutional and policy levels.

This paper evaluates the importance of combining digital finance with conventional finance and information technology (IT) to bring new opportunities for green technology innovation and transformation within polluting industries. This study builds a theoretical framework "digital finance → financing constraints → R&D investment → green technology innovation" to demonstrate the causal mechanism between digital finance and firms' green innovation by using the serial two-mediator model. The study shows that digital finance could reduce financial constraints and increase R&D investments, thereby improving enterprises' green technology innovation in the long run. Moreover, based on the moderating effect model, we find that digital transformation in a polluting firm tends to strengthen the linkage between digital finance and green technology innovation through supervising the use of loans, reviewing green technology innovation projects, and reducing managers' short-sighted behaviors to avoid agency problems. Furthermore, the heterogeneity analysis shows that the effects of digital finance on green innovation are more apparent in state-owned enterprises and the regions with lower financial development and with higher financial supervision.

Enhancing the low-carbon effect of green finance development (GFD) is an effective way for China to accelerate the comprehensive deepening of supply side structural reform, better realise the high-quality development of green economy and better protect the environment. Therefore, based on the green technology innovation theory and endogenous growth theory, from the four dimensions of green innovation (GI) in the GLOBIO model, the unbalanced panel data of 8976 manufacturing listed companies from 2009 to 2021 were used. This paper deeply explores the low-carbon effect of GI on the development of green finance (GF) in China’s manufacturing industry. The results show that: on the whole, GI based on environmental protection has a significant incentive effect on the low-carbon effect of GFD. Compared with green material innovation and green process innovation, green product design innovation and green equipment innovation have more incentive effect. Further analysis shows that green product design innovation and green equipment innovation can produce incremental effect on the low-carbon effect of green financial development through green material innovation. The conclusion not only provides empirical support for green technology innovation theory and endogenous growth theory, but also provides effective evidence for the path of GF to achieve low-carbon development.

In the rapidly expanding realm of the digital economy, the pivotal role of digital transformation in propelling businesses towards sustainable and progressive development is becoming increasingly evident. Examining how digital transformation motivates firms to innovate in green management practices sustainably is essential. Utilizing a dataset encompassing Chinese A-share listed companies from 2008 to 2020, this study empirically examines digital transformation's effects on the ongoing quest for green innovation. Additionally, it delves into the mediating role that green management innovation plays in this dynamic and evaluates how the fit of the innovation ecosystem within a company's regional environment serves as a moderating factor. The findings indicate that digital transformation strengthens firms' capacities for persistent green innovation. Green management innovation is revealed to be an intermediary in this process; meanwhile, aligning the innovation ecosystem's niche within a company's region amplifies the influence of digital transformation on fostering sustainable green innovation. This research offers valuable theoretical perspectives for organizations that leverage digital transformation as a strategic asset for ecologically friendly manufacturing and long-term expansion. This research examines how digital transformation drives sustainable green innovation in businesses, a significant but less-studied area. We aim to uncover the mechanisms influencing innovation, emphasizing the impact of green management and the fit of the innovation environment. We strive to provide empirical insights that enhance theoretical knowledge at the junction of digital strategy and environmental responsibility, guiding corporate practices toward operational efficiency and ecological sustainability. The study intends to foster a corporate ethos by integrating digital initiatives with green innovation and advancing global sustainable development.

[Purpose] Companies are facing internal and external pressure to accelerate the paradigm shift centered on low carbon and adapt and implement environmentally friendly business activities. According to this trend, it is becoming important for companies to actively promote the adoption and implementation of environmentally friendly activities such as green innovation. This paper aims to develop a model that verifies the determinants supporting green innovation and the impact of green innovation on performance. [Methodology] A research model was designed based on previous studies and theories, and a questionnaire survey was conducted on manufacturing companies to verify this. 96 samples of the questionnaire were used for the final analysis, and the hypothesis was verified using PLS－SEM. [Findings] It was found that corporate environmental ethics and market demand have a direct positive effect on both green product innovation and green process innovation. It was found that stakeholder interest had a positive effect on green process innovation, and management commitment had a positive effect on green product innovation. It was found that green product innovation had a positive effect on environmental and organizational performance. Environmental performance was found to have a positive effect on organizational performance. This supports the ‘Win－Win’ paradigm of environmental efficiency that improvement of environmental performance has a significant effect on organizational performance. [Implications] Green innovation is driven by corporate environmental ethics, market demand for green products, stakeholder interest, and management commitment. It suggests that participating in environmental business practices such as green innovation can help improve environmental and organizational performance.

The technological source of green innovation has been a persistent theme in environmental economics. In more recent years, digital technology has triggered a new round of social changes and is viewed as the emerging growth engine, leading to significant improvements in productivity and innovation. However, whether digital technology can promote green innovation remains an unknown issue. This study elucidates the causal relationship between digital transformation and green enterprise innovation for Chinese companies during 2009–2019. The findings indicate that digital transformation positively affects the quantity and quality of green innovation performance. Each standard deviation increase in the degree of digital transformation increases the quantity and quality of green enterprise innovation by 2.924% and 2.124%, respectively. Additionally, digital transformation drives green innovation by alleviating financing constraints and information asymmetries and improving human capital. This effect is more pronounced among enterprises in regions with high levels of environmental investment, clean industries, and stringent environmental regulations. By highlighting the linkage between firm-level digital transformation and green innovation, this study contributes to our understanding of the positive environmental externality associated with the diffusion of digital technology and offers valuable insights for the sustainable development of emerging economies.

The research aims to provide empirical evidence on the relationship of ESG and green innovation to company's business performance. The independent sample of this research is ESG was measuring ESG score. Dependent variables green innovation were measures using innovation of green product and innovation of green process. Sampling used in this research is purposive sampling technique. The sample of this research consisted of 66 manufacturing companies from 2016 to 2021. The data collected was analyzed using panel data regression analysis. This result shows that ESG positively influence business performance proxied by Tobin's Q and ROA unsupported. Green Innovation, which is proxied by green product innovation on the company's business performance, shows mixed results. Where green product innovation positively influence the company's business performance proxied by ROA. Conversely, green product innovation does not influence company's business performance proxied by Tobin's Q. Meanwhile, Green Innovation proxied by Green Process innovation effect on the company's business performance is not supported. Thus, it can be seen that ESG has not become a concern for investors in Indonesia, as evidenced by the limited number of public companies that disclose ESG scores. Green Innovation which is proxied by green product innovation and green process innovation shows mixed results which shows that customers are also considering purchasing products from companies whose innovations produce environmentally friendly products

In this study the complex relationships between sustainability practices and green innovation in Indian manufacturing firms, focusing on quality management, green process innovation, and green product innovation are examined. The aim of the study was to investigate the impact of green technological advancements and quality management on the financial performance and investor-perceived value of manufacturing firms. The green process and green product innovations implication on financial performance and investor perception was also explored. With the help of Pearson correlation and regression analyses, the study assessed the impact of quality management and green innovations on financial performance and investor perception. The findings revealed a significant positive correlation between green product innovation and investor perception, endorsing environmentally responsible companies to attract higher investments and improve financial prospects. However, no significant positive correlation was found between green process innovation and financial performance, which may be influenced by upfront costs and delayed benefits. Green process innovation moderates the relationship between quality management and investor perception, while green product innovation mediates the relationship between green process innovation and investor perception. These insights highlight the importance of prioritising green product innovation to enhance investor perception and integrate environmental considerations into quality management. The study's results align with Sustainable Development Goal 9, promoting sustainable industrialisation, innovation, and infrastructure in the Indian manufacturing industry, fostering a more resilient and environmentally responsible sector.

PurposeDriven by the dual-carbon target and the widespread digital transformation, leveraging digital technology (DT) to facilitate sustainable, green and high-quality development in heavy-polluting industries has emerged as a pivotal and timely research focus. However, existing studies diverge in their perspectives on whether DT’s impact on green innovation is synergistic or leads to a crowding-out effect. In pursuit of optimizing the synergy between DT and green innovation, this paper aims to investigate the mechanisms that can be harnessed to render DT a more constructive force in advancing green innovation.Design/methodology/approachDrawing from the theoretical framework of resource orchestration, the authors offer a comprehensive elucidation of how DT intricately influences the green innovation efficiency of enterprises. Given the intricate interplay within the synergistic relationship between DT and green innovation, the authors use the fuzzy-set qualitative comparative analysis method to explore diverse configurations of antecedent conditions leading to optimal solutions. This approach transcends conventional linear thinking to provide a more nuanced understanding of the complex dynamics involved.FindingsThe findings reveal that antecedent configurations fostering high green innovation efficiency actually differ across various stages. First, there are three distinct configuration patterns that can enhance the green technology research and development (R&D) efficiency of enterprises, namely, digitally driven resource integration (RI), digitally driven resource synergy (RSy) and high resource orchestration capability. Then, the authors also identify three configuration patterns that can bolster the high green achievement transfer efficiency of enterprises, including a digitally optimized resource portfolio, digitally driven RSy and efficient RI. The findings not only contribute to advancing the resource orchestration theory in the digital ecosystem but also provide empirical evidence and practical insights to support the sustainable development of green innovation.Practical implicationsThe findings can offer valuable insights for enterprise managers, providing decision-making guidance on effectively harnessing the innovation-driven value of internal and external resources through resource restructuring, bundling and leveraging, whether with or without the support of DT.Social implicationsThe research findings contribute to heavy-polluting enterprises addressing the paradoxical tensions between digital transformation and resource constraints under environmental regulatory pressures. It aims to facilitate the simultaneous achievement of environmental and commercial success by enhancing their green innovation capabilities, ultimately leading to sustainability across profit and the environment.Originality/valueCompared with previous literature, this research introduces a distinctive theoretical perspective, the resource orchestration view, to shed light on the paradoxical relationship on resource-occupancy between DT application and green innovation. It unveils the “black box” of how digitalization impacts green innovation efficiency from a more dynamic resource-based perspective. While most studies regard green innovation activities as a whole, this study delves into the impact of digitalization on green innovation within the distinct realms of green technology R&D and green achievement transfer, taking into account a two-stage value chain perspective. Finally, in contrast to previous literature that predominantly analyzes influence mechanisms through linear impact, the authors use configuration analysis to intricately unravel the complex influences arising from various combinatorial relationships of digitalization and resource orchestration behaviors on green innovation efficiency.

Achieving high-level green technological innovation in heavily polluting enterprises is critical for advancing sustainable development, particularly in the context of both organizational and regional digitalization. This study adopts a configurational perspective grounded in the Technology–Organization–Environment (TOE) framework and integrates theoretical insights from resource orchestration, resource dependence, and IT capability theories. It investigates how different types of skilled talent, such as production, technical, sales, and managerial employees, contribute to green innovation under varying digital conditions. By applying fuzzy-set qualitative comparative analysis (fsQCA) to a sample of 96 publicly listed firms from China’s heavily polluting industries, this study identifies four distinct talent-based configurations that can lead to high levels of green innovation: production-centric, management-led, technical talent driven, and regionally enabled models. Each configuration reflects a specific system state in which a core group of skilled employees plays a leading role, supported by complementary functions, and shaped by the interaction between internal digital transformation and the external digital environment. This study contributes to the systems literature by elucidating the combinational roles of digital resources and talent deployment within the systemic TOE framework, and offers practical guidance for enterprises aiming to strategically utilize human capital to enhance green innovation performance amid ongoing digital transformations.